New-vehicle affordability inched up in February to its best level since July 2021 as pandemic-induced conditions continue to fade.
The average payment fell 0.7% month-over-month while the number of median weeks of income to buy the average new model ticked down a tad from 37.4 to 37.1, about a 7% year-over-year decline, Cox Automotive said.
A mix of conditions is boosting affordability. The median consumer income grew 0.3% for the month as the average transaction price was essentially flat with a 0.1% decline. Growing manufacturer incentives helped further, along with a drop in the average loan interest rate from 10.28% to 10.15%.
The shifts combined to cut the average monthly car payment by 0.7% to $744, a $5 haircut after its peak of $795 in December 2022, Cox said.
